Utah Sales Law Exam UPDATED Exam Questions and CORRECT Answers

Utah Sales Law Exam UPDATED Exam Questions and CORRECT Answers It is June 18, and your license expired May 30. Which is NOT true? (a) You are now an inactive licensee. (b) You can renew by paying extra during June. (c) You are out of luck! Sta rt over. (d) You can comply with additional requirements and renew till October 31. - CORRECT ANSWER - c Assuming a REPC is accepted on January 25th and a check for $1,000 earnest money is given the same day, what is the latest it can be deposited into the Brokerage Trust Account? (a) January 28 (b) January 26 (c) February 1 (d) January 29 - CORRECT ANSWER - d A broker in Vernal lists a property in Roosevelt under an exclusive right to sell listing. The selling broker does not sell through the listing broke r. This could create: (a) Double commission (b) Dual disposition (c) Dual agency (d) Double contract - CORRECT ANSWER - a A person who owned a condominium might own any of the properties described below EXCEPT: (a) A medical/dental building (b) A unit in a light industrial complex (c) A single family dwelling (d) A nine -hole golf course - CORRECT ANSWER - d When the Division thinks a licensee is violating Utah Real Estate Law, before the hearing they may: (a) Issue a "writ of attachment." (b) Freeze the tru st account to protect against embezzlement. (c) Suspend the license of the individual involved in the questionable activities. (d) Issue a "Cease and Desist Order." - CORRECT ANSWER - d 15. You list a home that has an old well on it. The seller knows nothi ng about it. It is not being used now, but the seller doesn't know who has the water rights. Where would you check to find out. (a) Division of Water Rights. (b) Water Usage & Appropriations Commission (c) State Water Commissioner. (d) Utah Real Estate Division, Water Rights Section. - CORRECT ANSWER - a If a principal broker dies, and it is a sole proprietorship, what should be done with the records of the company? (a) A receiver will be appointed by the Division to handle the recor ds. (b) The Division should be notified as to where the records will be stored. (c) They must be transferred to the Division. (d) The administrator of the broker's estate must keep the records. - CORRECT ANSWER - b Under the Division Rules, which of the fo llowing is NOT correct? (a) When requested by the client, the agent must give them copies of documents from both sides of the transaction. (b) Licensees shall keep their broker informed regarding their transactions. (c) Net listings shall not be taken by a licensee. (d) A principal broker cannot keep part of the earnest money unless both parties agree. - CORRECT ANSWER - a Which of the following is NOT required for an unlicensed auctioneer to conduct an auction of real property? (a) A principal broker is pr esent at the auction. (b) The Real Estate Purchase Agreement is used and filled out by a licensee. (c) The earnest money is deposited in the broker's trust account. (d) A principal broker has reviewed and initialed all documents prior to the auction. - COR RECT ANSWER - d If a contractor files a mechanic's lien for an amount greater than the debt owed, he is guilty of: (a) a felony involving moral turpitude. (b) statutory fraud. (c) violating the rules and regulations of the Department of Real Estate. (d) a misdemeanor. - CORRECT ANSWER - d The buyer wants J, the agent, to write up the offer as a seller carry back for the financing of the sale. What statement is applicable to this situation? (a) J should request the loan documents from the lender, review them, then give an opinion about the legality of this approach. (b) J must disclose to both parties there might be a "due on sale" clause and its effect. (c) It is illegal, and if J values his /her license, J won't do it. (d) J. should request an estoppel certificate for disclosure to the buyer. - CORRECT ANSWER - b If a person living in a condominium project did not pay their homeowner fee, what might the consequences be? (a) They will forfeit their ownership. (b) A condemnation action would be initiated. (c) It would become fee simple defeasible. (d) A lien would be placed against the property. - CORRECT ANSWER - d 54. Which of the following statements is correct regarding the necessity of esta blishing a separate property management company? (a) When the brokerage is handling six property management accounts. (b) When the brokerage has seven property management accounts. (c) When the brokerage begins to do property management in addition to sale s. (d) There is no such requirement. - CORRECT ANSWER - d Why is a real estate license not sufficient when selling investment opportunities in a large real estate project that will involve multi -use properties? (a) Because a licensee cannot sell a partial interest in a property. (b) The multiple uses for the property require a specialized license. (c) It is a security and needs a securities license. (d) Because of the multiple zoning which would be required. - CORRECT ANSWER - c 1. Licenses are renewed usin g the Real Estate License management System on line. How long must you keep paper prooof of completion of your CE requirement?